Summarize

Simplifying... Inshort

Indian stock indices Sensex and Nifty hit record highs, driven by strong performances from Tata Steel, Bharti Airtel, JSW Steel, NTPC, HDFC Bank, and Kotak Bank.
Adani Ports and Divi's Laboratories also saw significant increases, with the latter's shares rising over 5% due to a 68% surge in March-quarter net profit.
Meanwhile, Asian shares and the Indian rupee also showed positive trends, influenced by global market movements and anticipation of key US inflation data.

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Today's surge was primarily driven by gains in financial and metal stocks

Sensex, Nifty scale fresh all-time highs: What's driving the rally

By Mudit Dube

May 27, 2024

12:09 pm

What's the story

Indian blue-chip indices, the Sensex and Nifty 50, achieved new record highs on Monday fueled by positive global market cues and continued investor optimism. Sensex reached a lifetime high of 75,679 before settling at 75,615 with a gain of 206 points or 0.27%. Similarly, the Nifty hit an all-time peak of 23,043 before trading at 23,015 up by 58 points or a rise of 0.25%. This surge was primarily driven by gains in financial and metal stocks.

Stock performance

Tata Steel, Airtel, JSW Steel, NTPC, HDFC Bank opened higher

Tata Steel, Bharti Airtel, JSW Steel, NTPC, HDFC Bank, and Kotak Bank were among the stocks that opened higher, contributing to the market surge. However, Wipro, Maruti, M&M, Asian Paints, and Power Grid opened lower. Adani Ports shares saw a 3% increase in early trade after BSE announced its inclusion in the 30-member Sensex effective June 24. Divi's Laboratories also experienced a significant rise of over 5% following a reported 68% increase in their March-quarter net profit.

Market analysis

Sector-wise performance and market analyst's insight

Nifty Realty led the sector-wise gains, opening 1.5% higher with Sobha, Lodha, and Godrej Properties leading the surge. Other sectors like Nifty Bank, Financial Services, FMCG, Metal Pharma, and Healthcare also experienced a rise. Vijayakumar, Chief Investment Strategist at Geojit Financial Services noted that "Sharp short covering in index futures and huge delivery based buying in frontline stocks like HDFC Bank have contributed to the strength of the market."

Global influence

Asian shares and Indian rupee show positive movement

Asian shares also edged higher, with MSCI's broadest index of Asia-Pacific shares outside Japan gaining 0.4%, after slipping 1.5% the previous week. This comes as investors anticipate a busy week of data, culminating in a key US inflation report that could influence interest rates. Meanwhile, the Indian rupee strengthened by four paise to 83.06 against the US dollar in early trade while the dollar index declined by 0.02% to a level of 104.7.